A Business Makes a Cash Payment to a Supplier "On

question 68

Multiple Choice

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.) Which account is credited?

• A) Cash
• B) Accounts payable
• C) Supplies
• D) Service revenue

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Definitions:

Budgeted Sales

Budgeted Sales are the projected amounts of sales revenue that a company expects to achieve during a specific period based on marketing and sales plans.

Selling Price

The amount of money charged for a product or service, or the sum the consumer must pay.

Credit Sales

Sales made on credit, where the payment is received after the service or good is delivered.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.